I have always had a love hate with Best Buy but to be honest, I have always hoped that they would continue to stay relevant and continue to do business as brick and mortar. Even though Best Buy slashed prices throughout the Holiday beating up on Walmart and other competitors they still warned that profits would be lower than expected profit margins. What has Wall Street happy again with the electronics retail giant is their slashing of annualized costs. The original estimate was 750 million but Best buy has exceeded that by 40m and is now committing to 1 billion in reductions. How do you get there if you are best buy? Restructuring management is one way that Chief Executive Hubert Joly is going to do it. Stripping away layers of management to the tune of 2,000 is what the New York Post is is reporting they have learned from an insider. Of course Best Buy has not confirmed this.
Best Buy shares are have jumped 5.7% with the new cost savings plan Best Buy is putting forward and is sitting at $27.29 a share on the NYSE. Best Buy also started shipping online customers direct from their 1400 stores. This is a great strategy as not only will it reduce shipping costs from closer store locatiosn to online shoppers locations but should also help slower stores turn over inventory.